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Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of physical and
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ROLE OF COMMERCIAL BANKS

ROLE OF COMMERCIAL BANKS

Banks are considered not mere as dealers in money but also the leaders in the development. Banks ,in the modern economy plays an important role in the progress of country.The economic progress in the present day in the developing economies largely depends upon the growth of sound banks system in these economies.

The following are contribution of commercial banks in the economic development of the economy :-

a)Capital formation - Capital formation is the most important factor of economic development and banks promote capital formation.It consists of 3 stages.
-generation of saving
-mobilisation of saving
-canalisation of saving
Bank plays an important role by
-stimulating savings by providing number of incentives to savers .
-by expanding their branches in different areas and giving various incentives,they succeed in mobilising the savings .

b)Economic activity : Banks influence economic activity,and hence pace of economic development through its influence on:
-Interest rates : A reduction in interest rates makes the investment more profitable and stimulates economic activity.To overcome deflation ,banks can follow cheap money policy with low interest rates.
-Credits :Bankers can influence economic activity by availablity of credit .Through Credit creation activity ,banks increases supply of purchasing power and hence aggregate demand , in turn ,increases investment production and trade in economy .

c) Encouragement to entrepreneurial innovations :Facilities of Bank to enable the entrepreneurs to step up their investments and innovations activities, adopt new methods of production and increase production capacity of economy.

d)Monetisation of economy : Banks help the process of Monetisation which is helpful in accelerating trade and economic activity in two ways :-
-They buy debts(not accepted as money) and in exchange create demand deposits (Accepted as  money).
-By spreading branches in rural and backward areas,bank converts the non - monetised sectors of the economy into monetised sectors.

e)Promotion of trade and industry: Economic progress in industrial countries is due to the expansion in trade which is impossible without the banking system. The use of cheques, drafts ,bills of exchange plays an important role in internal and international trade which in return accelerate pace of industrialisation in the economy.

f) Implementation of monetary policy: Economic development needs an appropriate monetary policy. But,a well developed banking system necessary for effective implementation of monetary policy. Control and regulation of credit by monetary authority is not possible without the active cooperation of the banking system of the economy.

g)Regional development : Banks plays a great role in achieving balanced development in different regions of the economy. They can transfer surplus capital from developed regions to less developed regions where it is scarce and more needed. This reallocation of funds between regions will promote economic development in underdeveloped area of the economy.

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